Working Capital Lower Target definition
Examples of Working Capital Lower Target in a sentence
If the Estimated Closing Working Capital is less than One Million Four Hundred Thousand Canadian Dollars (CDN $1,400,000) (the “Working Capital Lower Target”), then Buyer shall reduce the Cash Consideration, as converted to United States Dollars at the then current Exchange Rate, by the amount the Working Capital Lower Target exceeds the Estimated Closing Working Capital (the amount of such shortfall, the “Shortfall Amount”).
There shall be no adjustment to the Cash Consideration if the Estimated Closing Working Capital is an amount which falls on or between the Working Capital Upper Target and the Working Capital Lower Target.
If the Estimated Closing Date Net Working Capital is greater than or equal to the Working Capital Lower Target, but less than or equal to the Working Capital Upper Target, then the Closing Date Consideration will not be adjusted pursuant to this Section 2.1(c), but may be subject to adjustment for a Working Capital Underage or Working Capital Overage following the Closing, as otherwise provided in Section 2.3.
If the Estimated Closing Date Net Working Capital is less than the Working Capital Lower Target, then the Closing Date Consideration will be reduced by an amount (such amount expressed as an absolute value) equal to the Working Capital Lower Target minus the Estimated Closing Date Net Working Capital (such amount, the “Working Capital Underage”).
If the Final Working Capital is greater than the Working Capital Lower Target, no adjustment will be made hereunder.